WSP Global Inc. (WSP-T)

One of his largest positions, well managed, avant garde. Sector's had a really nice run, perhaps taking a pause. Leaders in environmental, a sector he really likes. Huge backlog, good growth especially as a global player, good margin improvement. 

Don't get overly worried about the pullback, might be a good time to add. Hold for the long term. Short report was a lot of nonsense.

WSP and STN are the top 2 companies in Canada. Serial acquirers. Hasn't invested in this area since burned by SNC-Lavalin. He doesn't have the same conviction for disciplined acquisition prices, or the same conviction for high ROIC, as he does for other industries.

He wished he owned it. They will benefit from infrastructure projects, a neglected area. They have a nice runway ahead. WSP has taken over the acquisition crown from SNC, and lower interest rates will help.

Pure-play consulting and engineering. Low-capital business, which he likes.

Is up despite a short report recently. Disagreed with that short report, full of unwarranted claims such as a weak board. Shares are down, so it's buying opportunity.

Not that capital intensive, as it consults, not builds. Executes incredibly well, grown nicely. You want to own it here. Accounting can be confusing, but not doing anything wrong as per the short report.

We're at a point in the market where this type of thing will come out. Be careful with these types of reports. It could be that whoever wrote the report has covered his short by now.

He likes the engineering group. Give it some space, 4-5 days, to see if things firm up. Pick a stop, and then see what happens over the next few days.

Likes the environmental space so much they launched Canada's first Global Biodiversity Fund, comprised of about 40 stocks. These stocks are focused on halting and reversing nature loss and restoring ecosystems. Companies like WSP, WM, and CLH will benefit from massive tailwinds driven by conservation targets.

Likes the sector of engineering services, instead of construction. 77% of STN revenue comes from NA. She owns WSP. Nothing wrong with STN, though it's smaller. Since STN is smaller, it might be able to grow faster.

WSP revenue from NA is 50% or slightly below, so it's more global. Starting to see organic growth pick up from its bigger acquisitions in very attractive markets. Growth profile slightly better.

Both grow organically and through M&A.  Both have balance sheet support to do M&A.

Homerun. Incredibly well run. Priced for perfection, don't buy here. If stock fell, he'd certainly take a look. Great Canadian company.

He's been adding to this since the 2022 correction. Very well-managed. These companies benefit from massive global trends in infrastructure. Yes, these companies are expensive but enjoy huge growth tailwinds. They're growing in environmental services. Definitely hang on if you own, or buy.

Engineering design firm not associated with liabilities of construction. M&A very strong the past few years. Strengthening environmental reclamation business. Beneficiaries of US Inflation reduction act. Excellent balance sheet allows for growth. Very strong management team that is proven in all aspects of market cycles. 

Government and business are and will develop infrastructure in Canada. WSP is 50/50 government and business. WSP has a footprint in most OECD countries, a massive company, so they have local expertise around the world and gives them a competitive advantage. Are asset-lite, with their big expense being their employees. Have a healthy backlog. A consistent company. They rely on M&A to make acquisitions, large and small. Debt is a healthy under-2x EBITDA. Expect an acqusition soon.

Her choice in the sector. It doesn't do construction, just engineering services and consulting. It's in all the verticals that are experiencing growth: environment, roads, infrastructure. Grows through acquisition plus organic growth.